Spotify has disclosed that it will be introducing Gen AI ads and other modifications to its advertising business.

The Spotify Ad Exchange (SAX) is a new programmatic offering that the company has introduced. It enables advertisers to target Spotify’s logged-in users through real-time auctions. This is worth noting.

At an event in New York City on Thursday, Spotify announced that it has entered into new partnerships with Google’s demand-side platform, Dispay & Video 360, and Magnite.

Yahoo DSP, Adform, and other companies are expected to follow in the near future.

Additionally, the Trade Desk is supported. The company stated that SAX will provide “complete addressability” and measurement capabilities.

Initially, Spotify will allow partners to advertise in its audio, video, and display formats for music.

Podcast support will be added in the future. SAX will be accessible in the following countries: the United States, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.

The company has made another significant announcement, announcing that it will be incorporating AI into its advertising offerings.

This will enable marketers to use Gen AI to generate scripts and voiceovers for their audio ads using Spotify Ads Manager in the U.S. and Canada.

Spotify has stated that advertisers will not incur any additional expenses as a result of employing its AI tools.

The modifications were presented to marketers as a means of engaging the highly sought-after Gen Z demographic, which utilizes the streaming service at all hours of the day, rather than solely when they are directly engaged with the app and viewing the screen.

The company boasted that it has amassed a user base of more than 251 million Gen Z members.